December 09, 2008
To the UT Family,
During a video conference Monday with university chancellors and institute heads, we discussed the latest criteria to consider as we look at budget reductions for the coming fiscal year. We are anticipating a reduction of as much as $75 million in state funding, which will obviously require very serious cost-cutting measures. You have been tremendous in submitting your ideas and suggestions via UTALK and through your campuses. We truly appreciate what many of you have already done by trimming energy consumption and taking other measures to help save money.
At this point initial steps must be taken to reduce our spending, and today we take the following immediate actions: a moratorium on new academic programs; a mandatory freeze on hiring, renovations, furniture and equipment purchases, and all non-essential travel; and the initiation of a system-wide process for academic program review.
Chancellors and institute heads will work to implement these steps appropriately, and in each area they will have flexibility in pursuing these actions. Any exceptions, however, must be approved at the system level by a task force headed by Executive Vice President David Millhorn.
We will be working closely together in the days ahead to achieve consistency across the system in how policies and procedures are implemented. We will also be looking at opportunities for consolidation and other ways to maximize efficiencies among our campuses.
Please continue to submit your ideas through UTALK, our interactive Internet feature at http://president.tennessee.edu/utalk or through your campus.
Moving beyond these initial efforts there are other potential measures under consideration, including many that have come from you. We are continuing the budget process, and no final decisions have been made on those.
Let me close with a comment on the decision to retain Phillip Fulmer:
Phillip Fulmer presents us with a unique opportunity to have someone who has brought national recognition in addition to deep, long-standing ties with the entire UT community. He is paid through privately donated funds, and the expectation is that he will help the University raise money that would otherwise not be available to us. I hope you will join in wishing him well in his new role with the University of Tennessee.
We are at the beginning of what will be a difficult process. We will keep you informed, and we remain committed to minimizing the impact on jobs as much as possible.
Thank you for your help.
John D. Petersen
